by logisticsplus | Aug 7, 2017 | News
As a reminder, the recently approved National Motor Freight Classification (NMFC) freight classification changes went into effect this weekend (August 5th, 2017). These changes will have far-reaching effects on LTL shipments of certain commodities in the NMFC that are based on density ratings, such as Plastic or Rubber Articles, Expanded, NOI (157320), and others. Previously, most items assigned a class based on density were subject to one of two tables. The so-called 9-tier classification broke down density into 9 sub ratings as follows:
| Sub 1 |
Less than 1 |
400 |
| Sub 2 |
1 but less than 2 |
300 |
| Sub 3 |
2 but less than 4 |
250 |
| Sub 4 |
4 but less than 6 |
150 |
| Sub 5 |
6 but less than 8 |
125 |
| Sub 6 |
8 but less than 10 |
100 |
| Sub 7 |
10 but less than 12 |
92.5 |
| Sub 8 |
12 but less than 15 |
85 |
| Sub 9 |
15 or greater |
70 |
The 11-tier classification contained 11 density breakdowns:
| Sub 1 |
Less than 1 |
400 |
| Sub 2 |
1 but less than 2 |
300 |
| Sub 3 |
2 but less than 4 |
250 |
| Sub 4 |
4 but less than 6 |
150 |
| Sub 5 |
6 but less than 8 |
125 |
| Sub 6 |
8 but less than 10 |
100 |
| Sub 7 |
10 but less than 12 |
92.5 |
| Sub 8 |
12 but less than 15 |
85 |
| Sub 9 |
15 but less than 22.5 |
70 |
| Sub 10 |
22.5 but less than 30 |
65 |
| Sub 11 |
30 or greater |
60 |
Effective August 5th, the 9-tier breakdown will go away and NMFC items subject to it will be replaced by the 11 tier breakdown. This change is actually good news for shippers, as it provides for a lower class for shipments that are very dense, specifically over 22.5 lbs per cubic foot. The other change however is not so favorable. The 11-tier breakdown will change the sub 4 rating for articles that have a density of 4 but less than 6 pounds per cubic foot. Previously this was rated as a class 150, but will now be rated at a class 175:
For shippers whose LTL shipments were previously rated at class 150 based on density and will now be rated at class 175, this represents about a 15% increase in freight rates. For shippers with an FAK rating of 150, this should not change that rating, but items that were previously in the actual class range may now change. For example, if a shipper has a FAK class 100 rating on items with an actual class of 100-150, and they ship Plastic Articles with a density of 4-6 pcf, this shipment will no longer be subject to the FAK class 100 and will instead move at the actual class of 175.
Please contact your Logistics Plus North American Division (NAD) freight representative if you have any questions regarding the new rules.
by logisticsplus | Aug 4, 2017 | News
Thank you to the folks at Wonolo for including Logistics Plus in their “How to Recruit Top Manufacturing & Logistics Talent” blog post. This is obviously an important topic for Logistics Plus given the recent growth and expansion announcements, and our pursuit to find additional logistics talent to join our cool, global company. The full article can be viewed online, and the excerpt that includes comments from Scott Frederick, VP of marketing for Logistics Plus, can be viewed below.
Wonolo (stands for Work. Now. Locally.) is an on-demand staffing platform for businesses to fill their immediate hourly or daily labor needs. Wonolo solves the last mile staffing problem for FORTUNE 500 companies as well as small-to-medium businesses (think Coca-Cola merchandising, eCommerce fulfillment, event staffing, hotel housekeeping, etc). Wonolo allows companies to manage unpredictability by augmenting their existing labor force with hourly to daily Wonoloers who can work immediately and do the job. Visit them online at www.wonolo.com
by logisticsplus | Jul 28, 2017 | News
Thank you to the VoyageHouston staff for including Logistics Plus in their Houston’s Most Inspiring Stories collection. The Logistics Plus Houston office – one of over forty locations around the world – is located in the North Loop area of Houston. Port Houston is an important gateway for the Logistics Plus International and Project Cargo teams. Additionally, the Houston office plays a key role in our U.S./Mexico cross-border logistical activities. Since we are a rising star in the State of Texas, the folks at VoyageHouston were kind enough to interview Jim Berlin, founder and CEO of Logistics Plus. Here is a clipping of the interview and profile (click the image to go directly to the VoyageHouston website).
by logisticsplus | Jul 25, 2017 | News
Thank you to the folks at Customer Strategist journal for including Logistics Plus in their “Flat Can Be Good for Business” case study article by Cara Rosner in their latest issue. The full article can be viewed online, and the excerpt that includes comments from Jim Berlin, founder and CEO of Logistics Plus, can be viewed below.
Customer Strategist aims to provide executives with insight they can use to build more profitable customer relationships. The journal facilitates learning and action by presenting progressive thought leadership, consulting methodologies, and in-depth research on customer issues. Readers can harness the information to create a long-term, competitive advantage. Visit them online at www.customerstrategistjournal.com.
by logisticsplus | Jul 20, 2017 | News
Carrier liability and cargo insurance (also known as shippers’ interest) are often thought to be the same thing. Although they both involve certain coverage of freight, they have some key differences that are important to understand. Damaged and lost items are unfortunately a common problem when shipping freight. Because of this, it is crucial to know how to get the best coverage on all of your shipments. Here are some of the key differences between carrier liability and cargo insurance:
Carrier Liability
All freight shipments come with some sort of “limited liability coverage.” This coverage is determined by the carrier and varies depending on the commodity type or freight class of the goods being shipped. For the most part, carrier liability covers up to a certain dollar amount per pound of freight. It is not uncommon to find that the included liability coverage is less than the actual value of the goods being shipped. Also, if the freight is used and not directly from the manufacturer, the liability coverage will be significantly less than it would be for new goods. Furthermore, carrier liability has limitations in certain instances when the damage is due to an act of God (weather-related), or act of the shipper (improper packaging or loading). In these two cases, the carrier cannot be at fault.
Cargo Insurance
Shippers’ interest cargo insurance, also sometimes referred to as freight insurance or goods-in-transit insurance, is a great way to protect customers from lost or damaged freight while it is being transported. This insurance is an additional charge that is typically based on the value of the goods being shipped. As previously mentioned, carrier liability may only cover a certain dollar amount per pound of freight. When your freight has a higher value than what is covered by liability, cargo insurance may be very beneficial to you in order to better protect yourself from lost or damaged cargo. Another benefit of purchasing cargo insurance is that you do not need to prove the carrier was at fault for the lost or damaged items, only that the damage or loss actually occurred.
Differences in the Claims Process
If the shipment is only covered by carrier liability:
- The freight claim must be filed within 9 months of delivery
- If the delivery receipt isn’t noted as damaged some carriers require immediate notification
- Proof of value and proof of loss must be provided
- The carrier has 30 days to acknowledge the claim and must respond within 120 days
- You must prove carrier negligence (the freight was picked up in good order and packaged properly, but was delivered in a damaged condition)
If the shipment is covered by shippers’ interest cargo insurance:
- You must provide proof of value and proof of loss
- Claims are usually paid within 30 days
- You aren’t required to prove carrier negligence
Logistics Plus can help assist you in determining a carrier’s limited liability amount and deciding what coverage is best for your freight shipments. We also provide very affordable and comprehensive cargo insurance to shippers who need the added protection. Contact us today to learn more!
by Marketing | Jul 19, 2017 | News
Shipping freight may seem like a very complex process due to the number of options available. It’s important to understand the differences between Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping because they are two of the most commonly used transportation options within North America. Shippers must consider size, speed, and price when deciding between a FTL versus LTL. Here are the main differences between FTL and LTL shipments to help you decide which shipping method works best for you.
The main differences between FTL and LTL shipments can be broken down into four categories:
Size
The first thing you must take into consideration when shipping freight is the size. The names Full Truckload and Less Than Truckload are self-explanatory and mean exactly what they say. LTL shipments are smaller shipments typically ranging from 100 to 5,000 pounds. These smaller shipments will not fill an entire truck, leaving space for other small shipments. On the other hand, FTL shipments fill most to all of an entire truck and tend to be much larger, often weighing 20,000 pounds or more. Shipments that weigh between approximately 5,000 and 10,000 pounds can sometimes move either LTL or FTL. When such shipments move LTL, they are often referred to as “volume LTL” shipments; and when they move FTL, they are often referred as “partial TL” shipments (read more about Volume LTL and Partial TL here).
Price
Since LTL shipments are smaller and leave room for other shipments, they are cheaper because you will only pay for the space that you use. FTL shipments use most of the entire truck and cost more because you are paying for more space in the truck. The decision between choosing a FTL or LTL is crucial because if you choose the wrong option, you may end up paying for space that you aren’t even using.
Time
If you are pressed on time and need to have something shipped quickly, FTL may be the way to go. Since LTL shipments involve more than just your shipment, they often require multiple stops and transfers before they reach the final destination. Typically, FTL shipments pick up and deliver on the same truck leading to a quicker delivery time.
Handling
Along with how quickly you need a shipment to go out, you must also consider how delicate or high-risk the shipment is. With FTL shipping, your shipment will stay on the same truck and will not be transferred anywhere else. This creates less risk of damaged or missing items when shipping FTL. On the other hand, LTL shipments may switch trucks or be transferred multiple times before delivery, increasing the risk of damaged or missing items.
Choosing the correct shipping method is crucial for saving time and money for your company. If you have LTL or FTL shipping needs, then look no further than Logistics Plus! Contact us today.
